Harley-Davidson (HOG)

The Company provides a standard
two-year limited warranty on all new motorcycles sold. The warranty coverage for the
retail customer includes parts and labor and begins when the motorcycle is sold to a
retail customer. The Company maintains reserves for future warranty claims using an
estimated cost per unit sold, which is based on historical Company claim information.
Changes in the Companys warranty liability were as follows (in thousands):

Three months ended

March 26,
2006

March 27,
2005

Balance, beginning of period

$

34,319

$

39,998

Warranties issued during the period

10,201

9,209

Settlements made during the period

(8,765

)

(5,842

)

Changes to the liability for pre-existing

warranties during the period

8,517

(2,540

)

Balance, end of period

$

44,272

$

40,825

During the three months ended March
26, 2006, the liability related to warranties issued prior to December 31, 2005 was
adjusted to reflect an increase in the estimated cost associated with the second year of
the Companys two-year warranty plan. Beginning with shipments of 2004 model year
motorcycles, the Company extended its warranty coverage from one year to two years. The
Company has determined, based on actual second year claims data that is now available,
that the cost associated with extending the warranty period is higher than originally
anticipated.

The Company provides a standard
two-year limited warranty on all new motorcycles sold. The warranty coverage includes
parts and labor, and begins when the motorcycle is sold to a retail customer. The Company
maintains reserves for future warranty claims using an estimated cost per unit sold, which
is based on historical Company claim information. Changes in the Companys warranty
liability were as follows (in thousands):

The Company provides a standard
two-year limited warranty on all new motorcycles sold. The warranty coverage includes
parts and labor, and begins when the motorcycle is sold to a retail customer. The Company
maintains reserves for future warranty claims using an estimated cost per unit sold, which
is based on historical Company claim information. Changes in the Companys warranty
liability were as follows (in thousands):

The Company provides a standard
two-year limited warranty on all new motorcycles sold. The warranty coverage includes
parts and labor, and begins when the motorcycle is sold to a retail customer. The Company
maintains reserves for future warranty claims using an estimated cost per unit sold, which
is based on historical Company claim information. Changes in the Companys warranty
liability were as follows (in thousands):

The Company provides a standard
two-year limited warranty on all new motorcycles sold. The warranty coverage includes
parts and labor, and begins when the motorcycle is sold to a retail customer. The Company
maintains reserves for future warranty claims using an estimated cost per unit sold, which
is based on historical Company claim information. Changes in the Companys warranty
liability were as follows (in thousands):